1. Field of the Invention
The present invention relates to a method for enhancing the efficiency of digitally communicated data exchanges and to a computer system that implements such a method. The invention particularly concerns the use of adaptive custom compression techniques, binary integers (“bits”), massively parallel processing, database optimization techniques and/or calculation optimization techniques to achieve such enhanced efficiency. The invention is applicable to any digitally communicated data exchange, but is particularly applicable to exchanges of financial information such as financial market buy/sell orders, market making, etc.
2. Description of Related Art
Historically, the trading of financial interests has been conducted on the floors of Market Exchanges or auction forums, whereby numbers of active participants concurrently bid to buy and offer to sell a particular stock, commodity, other security, or other asset. In recent years, however, the volume of transactions has dramatically increased, and the need to communicate and complete such transactions as quickly as possible has led to the development of computer systems designed to replace actual trading floors or auction forums (United States Patent Publication No. 2003/0126068). The fluid functioning of modern, high volume, rapid turnaround electronic Market Exchanges (e.g., Archipelago Exchange (ARCA), BATS Exchange, Chicago Mercantile Exchange, Eurex, International Stock Exchange, NASDAQ, New York Stock Exchange (NYSE), Dark Pools, and Electronic Communications Networks (ECNs), etc.) requires a highly efficient exchange of financial information between involved parties (e.g., buyers, Brokers, sellers, etc.).
Financial information is, however, currently communicated with sub-optimal efficiency. Systems and methods for processing and transferring data using data communications networks are shown in U.S. Pat. Nos. 4,745,559; 4,750,135; 5,230,073; 5,404,488; 5,815,556; and 6,006,206; and in United States Patent Publications Nos. 2003/0126058 and US 2005/0197916; and European Patent Application EP 1501258A1, and in PCT Publication Nos. WO 02/39293A1; WO 02/39355A1; and WO 02/43326A1. The most widespread method of communicating financial information is the Financial Information Exchange (“FIX”) Protocol (United States Patent Publications Nos. 2009/0144381; 2008/0154756; 2008/0004896; 2004/0064420; and 2004/0030632), and its variants (such as FIX Adapted for STreaming (FASTSM); see, e.g., Houstoun, K. (2006) “FIX Adapted for Streaming—FASTSM Protocol Technical Overview,” Fix Protocol, Ltd., fixprotocol.org). Although the FIX Protocol is an improvement over prior financial communication technologies it remains in many ways inadequately suited to evolving market volumes and transaction needs. The typical scenario that FIX was designed to address involves two parties to a financial transaction setting up a point-to-point communications link in order to exchange messages formatted according to a FIX protocol. This approach has led to multiple problems. One problem reflects the establishment of numerous point-to-point communications links between the various members of the financial trading community, which can lead to an intractable mesh of communication links and nodes. Additionally, the evolution of the FIX protocol has resulted in the creation of numerous variants that are only loosely related to and sometimes incompatible with one another. As a result, members of the financial trading community find themselves not only having to support a myriad of point-to-point communication links, but also having to support numerous protocol variants on such links. Consequently, any efficiency gains arising from the ability to exchange financial-transaction-related messages electronically can quickly become eroded by the complexity of the requisite supporting IT infrastructure (United States Patent Publication No. 2008/0154756).
Thus, despite all prior advances, a need remains for a method capable of enhancing the efficiency of digitally communicated data exchanges. The present invention is directed to this and other goals, particularly as achieved using an enhancement strategy that involves compression (custom, adaptive or adaptive custom), binary integers (“bits”) as the native language of some or all of the system, massively parallel processing, database optimization, and/or calculation optimization.